4 questions reported in BofA Securities interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Reserve-based valuation, commodity decks, contracted cash flows and PPAs. 4 questions
Grid parity is the threshold where renewables compete without subsidies. Fundamental to understanding the energy transition.
Explain grid parity in renewable energy. When does it occur, and why doesn't it immediately drive fossil fuel displacement?
The renewables valuation foundation. Every power and clean energy interview uses LCOE.
Explain levelised cost of energy (LCOE). How is it calculated and why is it the standard metric for comparing different generation sources?
The foundational regulated utility question. Returns are set by regulators, not markets.
Explain how regulators determine the allowed return on equity for a utility. What factors go into the rate case, and how does this affect valuation?
The strategic question facing every energy coverage group. The energy transition changes asset values.
How does the energy transition affect the valuation of traditional fossil fuel assets, and how do you model the risk?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
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